Discount Bank profit up 25%

Third quarter net profit rose 25% to NIS 276 million from NIS 221 million for the corresponding quarter.

Israel Discount Bank (TASE: DSCT) today reported strong profit growth on flat revenue for the third quarter of 2013. Revenue dipped to NIS 1.93 billion for the third quarter from NIS 2 billion for the corresponding quarter, but net profit rose 25% to NIS 276 million from NIS 221 million.

Net interest income fell to NIS 1.09 billion for the third quarter from NIS 1.14 billion for the corresponding quarter, and fees and other income fell to NIS 839 million from NIS 860 million. The provision for credit losses also fell to NIS 171 million (0.51% of total credit) from NIS 233 million.

Net return on equity rose to an annualized 9.5% for the third quarter from 7.9% for the corresponding quarter. The capital adequacy ratio rose to 14.4% at the end of September from 14.2% a year earlier, and the Tier-1 capital adequacy ratio rose to 9.3% from 8.4%.

Net credit to the public declined to NIS 116.5 billion at the end of September from NIS 119 billion a year earlier, and deposits from the public fell to NIS 152.1 billion from NIS 154.7 billion.